Guyana has received $19.8 Billion from the European Union (EU) as part of ongoing budgetary support for the country’s Integrated Coastal Management Programme.
According to the EU, the objective of the programme is to support climate change adaptation through an integrated coastal zone management approach and thereby protect the population in vulnerable, flood- prone areas. The mulilateral agency has commited to support the programme scheduled for 2017-2021 with $74.5 Billion.
This latest payment brings the total grant funds released since 2017 to $51. 6 Billion.
In a statement released on the programme the EU explained that this payment is made possible by the fulfilment by Guyana of a comprehensive and demanding set of requirements.
The disbursement should, they explained, provide a major contribution to the inclusive and sustainable development of the country, and substantial fiscal space for the country(‘s) finances, in the context of an unprecedented COVID 19 crisis.
Speaking at a joint press conference at the residence of the European Union Ambassador in Bel Air Gardens to announce the disbursement, President Irfaan Ali welcomed the released of the funds noting that it comes at a time when mobilising resources is extremely difficult.
“The pandemic has indeed caused tremendous socio and economic hardship and financial constraints on countries….it is impressive that at this time when there is a global call for rescheduling of loans and loan payments the EU has been able to mobilise this disbursement,” he explained.
Ali stressed that Guyana would ensure that the funds once received will go towards its intended purpose. That purpose as explained by Minister with responsibility for Finance in the Office of the President, Ashni Singh is the management of Guyana’s sea and coastal defence.
Singh noted that while Guyana has received similar disbursements in the past an inactive parliament following the December 2018 no confidence motion rendered the country ineligible for support.
“Guyana was a former star performer…[and while the programme] continued over the last five years since December 2018 after the passage of no confidence motion and absence of parliamentary oversight the country was found in a situation where it was unable to secure the disbursement,” he explained.
The Minister stressed that basic eligibility critieria include good governance, macro-economic stability, fiscal oversight as well as good and strong public financial management.
More specific requirements were explained by the EU which noted that Guyana had since 2017 increased women’s representation on the sea and river defence board to at least 33% , constructed 8.3 km of sea defence, rehabilitated 10.30 km of sea defence and maintained 59 km of sea defence.
Additionally six new mangrove sites have been constructed, 33% of the selected industrial attachment internships have been women, there has been an increase in drainage pumping capacity in coastal locations and Georgetown with total newly installed capacity of 4m3/s , and upgrading of outfall channels.
Further a comprehensive awareness campaign for girls and women to study science, engineering and technology has been implemented, 10 video ads per year have been disseminated on TV and Social media, including Department of Public Information channels, 10 radio ads per year, to mirror the video ads, and disseminated on radio networks, 6 print ads, based on the top 10 video ads each year, 100 posters
disseminated in schools, communities, regional government offices, one public forum presentation, one radio panel discussion, Regional multi-hazard preparedness and response plans have been completed for different regions and 24 community based disaster risk management plans have been completed.
Finally, updates of the sea defence bill and disaster risk management bill have started.
EU Ambassador Fernando Ponz Cantó stressed that though Guyana is the newest oil producing state it still needs supports of this nature as a means to “bridge” fiscal requirements before oil revenue is available.
There are many challenges he said explaining that the EU stands ready to help Guyana to manage these challenges whether through governance reform, institutional reform, electoral reform or any other support needed.
Referencing the protracted 2020 elections, Cantó went on to express the hope that the funds will be used for the progress of all of Guyana as the country moves forward in the spirit of inclusivity and reconcilliation.
“It is time to look towards the future. As friends of Guyana, we would like to see Guyanese growing together,” he stressed, before explaining that budgetary support is only offered when there is trust between the EU and the government.
“The money comes and goes directly to the budget. Government decides where to spend it within the sector,” he noted.
